It’s hard to believe some folks think economics is boring. They even go so far as to call it a “dismal science”. I say, “How dare they!”
Not to make light of another’s misfortunes but let’s take a look at the story of the head banker at the International Monetary Fund (IMF). It’s anything but dull. Honestly, you can’t make this stuff up.
Here’s the “Numero Uno”, the “Grand Poobah”, the “Big Cheese” at the IMF and it’s alleged that he sexually assaulted a black maid at the $3,000 per night New York City hotel where he was staying.
The story goes that he was removed from a jet at the airport and arrested as he attempted to flee the country. In his haste to depart he even left his cell phone and other personal belongings behind in his hotel room. He was jailed and held for a few days before being released, on a million dollars bail, and currently he’s under house arrest at a luxury NYC apartment awaiting trial.
As leader of the IMF and a political contender for the French Presidency Dominique Strauss-Kahn was a powerful man. There are those that say this was a set-up to take him down. Others suggest it’s the behavior of a power mad elitist and that the IMF does to counties exactly what it’s been alleged Dominique did to the maid. Whatever the truth, it couldn’t have come at a more interesting time.
The Euro monetary situation is rapidly deteriorating. On the street the PIIGS (Portugal, Italy, Ireland, Greece, Spain) are suffering from high unemployment and demonstrations are getting bigger and better organized. Meanwhile, in the world of finance, Greek 2 year debt is over 20%. The high rate reflects the risk that if you lend Greece your money you may not get it back, and for good reason. Billions of Euros are rapidly fleeing the country. The Greek banks are experiencing an electronic bank run as institutional depositors move their funds out of the country and into safer banking systems. The smell of a collapse and sovereign default is in the air.
Now, where the heck is the IMF with some more of that bail out money? Oh yeah, they used it to bail out Dominique.